Are we decoupling for good?

That’s the $64 bln question today.

Logically. it would be a good time for US equities and the dollar to join forces as money flows out of a stagnating euro zone into a mildly recovering US economy. But logic and profits are only loosely acquainted. We’ll juts have to wait and see.

In general, I expect broad USD strength to continue early in the new year and for commodity currencies to trade well on the crosses as the firmer US economy cushions fears of a global slump, instead turning the focus to a regional European slump.

EUR/USD is consolidating losses in the 1.2730s after having traded as low as 1.2726 a bit earlier.